The High Court of Australia has dismissed an appeal by Qantas, upholding a Federal Court ruling that found the airline unlawfully terminated nearly 1,700 ground staff.
The ruling concludes a two-year tussle between the Transport Workers Union (TWU) and the airline. At the height of the COVID-19 pandemic in 2021, Qantas had outsourced these roles across 10 Australian airports.
Heavily unionised
The Federal Court initially stated that Qantas outsourced the workers, a heavily unionised group, to obstruct their ability to take industrial action during future enterprise negotiations. For its part, Qantas maintained that the sackings were lawful.
The airline contended that the Fair Work Act neither protected future workplace rights nor prevented employers from blocking industrial action that would have been illegal at the time.
The High Court countered these arguments, noting they would "unduly strain" worker protections. Chief Justice Susan Kiefel led the unanimous verdict.
Following the court's decision, TWU National Secretary Michael Kaine called for the resignation of Qantas chairman Richard Goyder, saying it had been more than three years since Alan Joyce, the former CEO of Qantas, outsourced the workers. Kaine also suggested that Joyce be stripped of his bonuses.
The airline disclosed that it had anticipated A$80 million in capital expenditure savings and A$103 million in annual ongoing savings as a result of the terminations.
Maurice Blackburn Lawyer Josh Bornstein pointed out that the airline had gained financially by prolonging the legal process.
As a result of this ruling, Qantas now faces a return to the Federal Court, where it is likely to incur significant fines and may have to compensate the affected workers.
This comes at a challenging time for the airline, which has slashed A$1 billion from its cost base since the onset of the pandemic and is struggling to rebuild public trust.
The ruling serves as a significant setback for Qantas and is viewed as a monumental win for labour rights in Australia.
While Qantas has publicly apologised for the sackings, the Federal Court will next consider penalties for the breach and compensation for the impacted employees, factoring in redundancy payments already made.